d e c e n t r a l i s a t i o n1

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Significance Of Delegation

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Page 1: D E C E N T R A L I S A T I O N1

Significance Of Delegation

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Significance Of Delegation

Effective functioning of org.Lessens burden of top executive.Facilitates quick decisions.Building morale.Healthy relationship between manager and

sub-ordinates.

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Obstacles In Delegation

On The Part Of Superior.On the Part of Subordinate.On the Part of Organisation.

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On The Part Of Superior

Feeling of perfectionism.Lack of ability to direct.Lack of confidence in subordinates.Lack of control.Fear of competition from subordinates.

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On The Part Of Subordinate

Dependence on the boss.Fear of criticism.Lack of self-confidence and fear of failure.Lack of information and resources.Lack of positive incentives.Overburdened with work.

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On The Part Of Organisation

Vague organisation structure.Non-clarity of authority and responsibility.Lack of effective control mechanism.

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Methods To Make Delegation Effective

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Methods To Make Delegation Effective.Determine goals.Clarify responsibility and authority.Motivate subordinates.Provide training.Require completed work.Two way communication.

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Benefits Of Delegation

Ensures co-ordination.Reduces burden of executives.Facilitates expansion in and diversification

of business.Opportunities of division of labour.Development and training of young

executives.Boosts the morale of employees

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DECENTRALISATION

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Degree of Decentralisation

What Kind of Authority is Delegated?How Far Down in The Organisation is it

Delegated?How Consistently it is Delegated?

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Measuring the Degree of Decentralisation

Number of Decisions Importance of DecisionsEffects of DecisionsChecking of Decisions

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Factors Determining Degree of Decentralisation

Size of Organisation History of Organisation Philosophy of Management Availability of Competent Managers Pattern of planning Control techniques Decentralized activities Rate of change in organization Environment influence

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How To Make Decentralisation Effective

Centralisation of Top Policy & ControlAppreciation of Concept of

DecentralisationDevelopment of ManagersCompetition Among The Units

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Advantages of Decentralisation

Lift to Top ExecutivesMotivation of SubordinatesQuick decisionsGrowth & DiversificationExecutive DevelopmentEffective CommunicationEfficient Supervision and Control

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Disadvantages of Decentralisation

ExpensiveDifficulty in Co-ordinationLack of UniformityNarrow Product linesExternal Constraints

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Difference Between Decentralisation & Delegation

A Process

Denotes Relationship Between Superior & Subordinate

Technique of Management

End Result of Delegation

Denotes Relationship Between Top Management & Various Departments or Divisions

Philosophy of Management